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JohnnyCash

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Reply with quote  #1951 


Re-post but still pertinent jawdropping revelations
 

04/20/10 at 11:53 PM
Forum: Discussion Board
Subject: Deflation...Inflation....Stagflation...or???Replies: 1,963
Posted By: JohnnyCashViews: 44,796
 

OFHEO Investigator Armando Falcon Blasts Fannie and Freddie Leadership

"How do you operate a business, with the most generous government subsidies which confer very powerful market advantages and run the business into the ground?"  "This was a failure of leadership"



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JohnnyCash

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Reply with quote  #1952 
Bill Gross of Pimco Comments on QEII

http://www.pimco.com/Pages/RunTurkeyRun.aspx

He agrees with the point raised here 20 months ago that banks aren't lending and borrowers aren't borrowing which stymies the Feds inflation mechanism.

Then he coins the term Sammy Scheme (Uncle Sam) as the ultimate Ponzi Scheme where the schemer jumps in with the sucker investors. This relies on inflation as he believes is coming --- which it will at some point.

But there cannot be a simultaneous absence of lending and/or credit creation as he states above and inflation at the same time. So there will be inflation but only after the deflation.

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JohnnyCash

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Reply with quote  #1953 

Quote:
Originally Posted by JohnnyCash
Quote:
Originally Posted by rickencin

 It would be interesting to see your actual Elliot Charts with the 5 impulsive subwaves, 3 corrective subwaves and Fibonacci ratios. 

You have my Elliott Wave chart, it's the Bigchart.com DXY I posted. Just follow the dollar up from the low of about 74 at the end of November '09 to the near top in May 2010. I did this by reading the Bigchart.com DXY a few minutes before posting it on May 16th. I didn't use any special Elliott Wave charts just the very chart I posted. In this case I didn't even use Fibonacci ratios (though I have in other cases) because the pattern is so clear.

 

Just start at 74 in November '09 and follow the 5 waves up and down, 3 Impulse up and 2 Corrective down ending with the 5th wave up in May-June '10. Impulse waves are up, corrective down when studying a rising trend. It starts with an Impulse wave 1, then corrective wave 2, alternating impulse and corrective 'till the 5 wave pattern is completed.

 

Pattern matching is a task the human brain is designed to do very well and extremely fast, even faster than computers. That is what Elliott Wave is all about. It's just that his patterns are produced by the human herd instinct and many other biological phenomena.

 

I apologize for overlooking this question the first time.

 

 


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rickencin

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Reply with quote  #1954 
Quote:
Originally Posted by JohnnyCash

Pattern matching is a task the human brain is designed to do very well and extremely fast, even faster than computers.  

 

 

I totally agree with this.

 

How about that negative TIPS rate.  Time for me to start doing my commercials for the "Mattress Bank", fun for the whole familty!


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Reply with quote  #1955 

If you have money in mutual funds, Treasury bonds, municipal bonds or high-yield bonds, Robert Prechter has just issued a crystal-clear warning for you: Your money could be at risk.

        Prechter, the famed market forecaster who specializes in Elliott wave analysis, sent similar warnings about the Nasdaq in 2000, real estate in 2006, the blue chips in 2007 and commodities in 2008. His forecasts proved deadly accurate.

In trademark fashion, Prechter now has his readers focused on something most mainstream investors, analysts and advisors are taking for granted: the safety and stability of the bond market.

Why worry about the safety of bonds, you ask? A recent USA Today article reported that investors put a "record-shattering" net $376 billion into bond mutual funds in 2009, and individual investors and mutual funds are "still showing the love" in 2010.

After such explosive growth, Prechter says bond investors have been pushed to the edge of a mile-high cliff. Millions of investors are just one step away from tumbling over the edge.

If your hard-earned savings are exposed to the developing risks in these markets, you owe it to yourself to heed Prechter's urgent warning.


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JohnnyCash

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Reply with quote  #1956 

Re-Post but wise to remember when considering corporate bond investments. Short Term Treasuries are the safest option.

08/08/10 at 03:46 AM
Forum: Discussion Board
Subject: Deflation...Inflation....Stagflation...or???Replies: 1,968
Posted By: JohnnyCashViews: 44,996
 
This from Brett Arends of MarketWatch:

Brett Arends' ROI

Aug. 3, 2010, 12:01 a.m. EDT 

The biggest lie about U.S. companies

Commentary: Healthy balance sheets? They owe $7.2 trillion, the most ever

BOSTON -- You may have heard recently that U.S. companies have emerged from the financial crisis in robust health, that they've paid down their debts, rebuilt their balance sheets and are sitting on growing piles of cash they are ready to invest in the economy.

You could hear this great news pretty much anywhere -- maybe from Bloomberg, which this spring hailed the "surprising strength" of corporate balance sheets. Or perhaps in the Washington Post, where Fareed Zakaria reported that top companies "have accumulated an astonishing $1.8 trillion of cash," leaving them in the best shape, by some measures, "in almost half a century."

Or you heard it from Dallas Federal Reserve President Richard Fisher, who recently said companies were "hoarding cash" but were afraid to start investing. Or on CNBC, where experts have been debating what these corporations are going to do with all their surplus loot. Will they raise dividends? Buy back shares? Launch a new wave of mergers and acquisitions?

It all sounds wonderful for investors and the U.S. economy. There's just one problem: It's a crock.

Investors hear July echoes

This July resembled the previous July in several key respects. What does this suggest for the markets for the rest of 2010?

American companies are not in robust financial shape. Federal Reserve data show that their debts have been rising, not falling. By some measures, they are now more leveraged than at any time since the Great Depression.

You'd think someone might have noticed something amiss. After all, we were simultaneously being told that companies (a) had more money than they know what to do with; (b) had even more money coming in due to a surge in profits; yet (c) they have been out in the bond market borrowing as fast as they can.

Does that sound a little odd to you?

A look at the facts shows that companies only have "record amounts of cash" in the way that Subprime Suzy was flush with cash after that big refi back in 2005. So long as you don't look at the liabilities, the picture looks great. Hey, why not buy a Jacuzzi?

According to the Federal Reserve, nonfinancial firms borrowed another $289 billion in the first quarter, taking their total domestic debts to $7.2 trillion, the highest level ever. That's up by $1.1 trillion since the first quarter of 2007; it's twice the level seen in the late 1990s.

The debt repayments made during the financial crisis were brief and minimal: tiny amounts, totaling about $100 billion, in the second and fourth quarters of 2009.

Remember that these are the debts for the nonfinancials -- the part of the economy that's supposed to be in better shape. The banks? Everybody knows half of them are the walking dead.

More debt than ever: Leverage for nonfinancial U.S. corporations.

Central bank and Commerce Department data reveal that gross domestic debts of nonfinancial corporations now amount to 50% of GDP. That's a postwar record. In 1945, it was just 20%. Even at the credit-bubble peaks in the late 1980s and 2005-06, it was only around 45%.

The Fed data "underline the poor state of the U.S. private sector's balance sheets," reports financial analyst Andrew Smithers, who's also the author of "Wall Street Revalued: Imperfect Markets and Inept Central Bankers," and chairman of Smithers & Co. in London.

"While this is generally recognized for households," he said, "it is often denied with regard to corporations. These denials are without merit and depend on looking at cash assets and ignoring liabilities. Cash assets have risen recently, in response to the fall in inventories, but nonfinancials' corporate debt, whether measured gross or after netting off bank deposits and other interest-bearing assets, is at peak levels."

By Smithers' analysis, net leverage is nearly 50% of corporate net worth, a modern record.


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JohnnyCash

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Reply with quote  #1957 
Re-post but keep in mind when considering muni-bond investments:

03/09/10 at 06:24 PM
Forum: Discussion Board
Subject: Deflation...Inflation....Stagflation...or???Replies: 1,969
Posted By: JohnnyCashViews: 44,996
 

State and Local Gov. Sales Tax Receipts in Free-Fall

State and Local government revenues from business sales have exceeded the decline rates of the Great Depression and all other recorded periods. This is ominous for municipal bonds and interest rates in the municipal bond sector. Local governments will be unable to maintain services at current levels.

The deflationary forces inducing the free-fall show no sign of a rebound. This is a shocking indicator of the magnitude of the contraction in the economy despite the optimistic reports in the media and other official statistics. 


FRED Graph


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JohnnyCash

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Reply with quote  #1958 

Re-Post but note the similarities to today, in particular the rise in the stock market in March of 1935 from the review of the New York Analyst magazine of that year.

Ben Roth was a lawyer living in Youngstown Ohio during the Great Depression. He kept a diary of local and national economic events which was recently compiled into a book published by his son.

11/09/09 at 04:58 AM
Forum: Discussion Board
Subject: Deflation...Inflation....Stagflation...or???Replies: 1,970
Posted By: JohnnyCashViews: 45,001
 
Quote:
Originally Posted by kaihacker
Quote:
Originally Posted by JohnnyCash

What is your investment plan, what will happen next?


I only really know real estate...so real estate is my play.

My current plan is to buy low enough that I can survive some deflation or flat but to continue to build up a portfolio which will benefit from future inflation.

...

On a side note...I have somewhat prepared for worst case scenario...I live in a very efficient house with solar heat and hot water, it has a well for water and its a 2 minute walk to a year round river (the Kern).  I have 6 to 10 years worth of fire wood for heating/cooking and 250+ trees on my property which will supply a indefinite supply by just trimming the dead branches.  I also have a few months worth of food along with a couple dozen fruit trees and a boat load of seeds for planting my 2+ac of land.  I am not really too crazy about the survivalist thing...I just see it as cheap insurance...and our dream house by the river just happened to be very well equipped.  This is my "sh!t hits the fan" hedge.


You have a beautiful place. Congratulations on the new baby. Rural areas may become more popular. Ben Roth briefly mentions there was a reversal of people from the cities back to the farms. I’m happy in the city with an SFR, a patch of green and some fruit trees.

 

There are a couple more references from Bens’ diary that I would like you to think about.

 

January 2, 1937:

“It seems to me that the time has come where we can formally and officially announce that the Depression of 1929 has ended.”

 

2 ½ years later, 7/19/1939 he reviews his diary and adds this note:

“You [meaning himself] were wrong. A new depression started Sept. 1937 and is still with us.”

 

January 21, 1936:

“The U.S. Senate approved the payment of the soldiers’ bonus by a vote of 76 to 14. The vote is large enough to over-ride the expected presidential veto. This will add a burden of over two billion to the budget. … It is a dangerous doctrine.”

 

Bear in mind that Ben Roth was an officer in the US Army in World War I. He too would receive a bonus but was still against it. The bonus was substantial, about 1/3 of a typical pre-depression years’ income. Mr. Roth was what used to be called a “rock-ribbed Republican”. The “Bonus Army” marched on Washington during Hoovers’ Presidency and was run out of town by General MacArthur and his assistant officers, Maj. Dwight Eishenhower and Maj. George S. Patton.

 

January 23, 1936:

“I read a very able review of the entire financial situation in the annual review number of the New York Analyst. The writer came to the following conclusions:

  1. The recovery that started last March is bona fide and will carry thru, with minor interruptions to the final recovery.
  2. Even tho the recovery so far and the stock market advance have been spectacular—we are still at a point in industrial production which is as low as the low points in almost all other depressions (about 12% below normal).
  3. In other depressions the final recovery was spectacular and continued not only from the depth to normal but continued on far above normal. In all past depressions this spectacular recovery above normal was compressed within a space of 12 to 18 months. If  this depression runs true to form—the next year may see a continuation of spectacular recovery in a straight line upward until we are far above normal.
  4. On this basis the market recovery since March is justified and stock prices are not too high. On this basis also the next two or three years offer very fine prospects for great enhancement of common stocks.
  5. The near-term prospect in stocks is clouded by political uncertainty both here and abroad.
  6. The writer says little about inflation. However if a general European war or other great catastrophe happened it would go hard with this country because of our precarious financial situation. Government bonds would depreciate because of higher interest rates and many banks might close because of over heavy subscription to government bonds.”

 

Almost 2 years later on 12/21/1937 he reviewed the above note and commented:

This prediction was wrong. Stocks continued up until September of 1937 and then came a worse severe era which is not yet ended. Stocks lost more than 50% are now below 1935 prices. The 1936 boom was an inflation boom following bonus payments and was not the final recovery. Business is now 20% below normal and never exceeded normal. Steel mills are now operating 30%. Much suffering

 

His note for January 23, 1936 continues:

“It is curious to see how everybody is dabbling in the stock market again. The fact that they were cleaned out in 1929 seems to make them determined to make up their losses. …”

 

Again almost 2 years later on 12/21/1937 he reviews the above note:

“Sequel. The Warner stock went up to 18 and then crashed to 7. Client held on and when stock reached 18 he started to buy on margin thinking it would go to 1929 prices. Was almost wiped out. Moral: Don’t be a hog.”

 

Ben Roth was against President Roosevelts’ intervention in the economy and notes with satisfaction each instance that the Supreme Court struck down one of the socialist agencies, as he saw it. On March 5, 1934 he comments:

“A year has passed since Roosevelt inaugurated his “new deal”. Through various agencies he created the government has poured huge amounts of money to help industry, the banks and people in distress. It is said that today almost 1 out of every 4 people is being supported by the government. Private industry has so far failed to respond and for awhile even the deflated dollar is forgotten. …

… NRA—Nat’l Recovery Admin—Controls industry, wages, hours, etc. and puts a blue eagle on all who obey.

 

Roosevelt is as popular today as a year ago. His following with the working class is tremendous. It seems he and the Democrats will be in power for some time. Socialism is now calmly accepted by ministers, professors, etc. and it is amazing to me to see how calmly most people accept drastic government regulation. …

 

None of the professional classes have benefitted from the new deal. My law practice is still at rock bottom—altho there is plenty of work but no remuneration. I believe the laboring class has benefitted most of all.”

 

8/21/44

“No boom yet---to the contrary, low prices all through the war.”

 

8/12/46

“We had very little inflation during the past 10 years although it has been widely discussed. Prices are now pretty high because of post-war inflation but are being held down by the OPA [wartime Office of Price Administration]. …”

 

Ben Roths’ record of events corroborates the price change data in the BLS matrix I posted several weeks ago. While there was a brief period of inflation in 1936 and 1937 he lays it on the one-time veterans’ bonus which put the cash directly into the hands of the citizens. In other words no bank loan (or other credit device) was required. Review all the negative price change numbers in the BLS matrix. The entire period 1930 – 1939 was primarily deflationary. The US didn’t really enter the war until 1942. Peacetime years 1940 and 1941 are included in Bens’ “low price” years previous to 8/21/44.

 

The deflationary US period 1930 thru 1941 is similar to the deflationary experience that Japan has had since 1990. After the War and the termination of the OPA prices began to rise.

 

As Roth records, all through the period inflation was much expected and discussed but contrary to expectation was very brief and then reversed. When the War ended the US was for all practicle purposes untouched. Europe and Japan, the only other industrialized regions (Soviet Union was mostly industrialized for military hardware only) of the world at that time were completely devastated by heavy bombing. US industry had the entire world laid before it. This ended the depression.


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JohnnyCash

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Reply with quote  #1959 
Re-post, when you think of China remember Ordos:

12/21/09 at 01:56 AM
Forum: Discussion Board
Subject: Deflation...Inflation....Stagflation...or???Replies: 1,971
Posted By: JohnnyCashViews: 45,064
 
Is China Entering a Bubble Phase?

The Chinese city of new Ordos has been built with government stimulus money. It is a brand new city, with condos, office buildings, shopping malls and wide modern streets bordered with artistic monuments. It is a beautifully designed habitat for 1 Million residents and it is almost completely empty. The government says the empty condos are all sold but to investors not occupants. The Chinese share a belief common in the US 20 years ago -- that real estate never loses value. 30 miles from new Ordos is old Ordos with crowded narrow streets filled with bike, motorbike and car traffic and chock full of residents and businesses. The plan is for the people of the old city to move to the new city. There is only one problem, few if any in the old city can afford the prices in the new one.

The Chinese GDP increases with each new real estate project. So does the production of the local province where the project is built. This has led to loose funding of all kinds of real estate development which is remaining empty after construction. Guang Dong (sp?) is another city with sky high office buildings that are completely empty yet in the background several cranes are busily erecting more office space.

Some perhaps a lot of the stimulus money is finding its' way into the Chinese stock markets. There are signs that the Chinese stock markets are on a path similar to that of the US in the late 90's and early 2000's.

Lending is going forward in China at inflationary speed as the report below shows.

New local-currency loans totaled 294.8 billion yuan ($43.2 billion), compared with 253 billion yuan in October, according to data released by the People’s Bank of China on its Web site today. The median forecast of 19 economists in a Bloomberg News survey was 250 billion yuan.

M2, the broadest measure of money supply, rose a record 29.74 percent in November from a year earlier.

China’s banking regulator plans to slow new lending to between 7 trillion yuan and 8 trillion yuan next year, a person familiar with the matter said this week. China is trying to ensure that there is enough credit to support an economic recovery without increased risks of bad loans and asset bubbles.

“We believe slower credit growth in 2010 will be key to avoid a boom-bust scenario in the economy,” Wang Tao, a Beijing-based economist for UBS AG, said in a report.


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JohnnyCash

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Reply with quote  #1960 
Re-post but even more pertinent now than when first posted:
09/03/10 at 01:09 AM
Forum: Discussion Board
Subject: Deflation...Inflation....Stagflation...or???Replies: 1,972
Posted By: JohnnyCashViews: 45,064
 
Mexico Descends Into Anarchy, Threatens US

Mexican Drug Cartels are now challenging the authority of the Mexican Federal Government with massive violence, drugs and big money. It is not at all clear that the Mexican Federal Government will survive this assault. This is no longer limited to Mexico, the Cartels have spread North and established their footholds in the US under legitimate appearing businesses and political bodies.

Former LA Sheriff explains the unreported and disturbing extent, sophistication and effectiveness of the Mexican Drug Cartels' infiltration into California, Arizona, New Mexico and Texas politics and businesses. Much worse than the current scandal in the city of Bell California.



Report to the US Congress on Cartels and their infiltration: http://www.fas.org/sgp/crs/row/RL34215.pdf

Cartels use the Internet


Useful updates
http://watchourcity.com

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JohnnyCash

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Reply with quote  #1961 
Currency Wars = Trade Wars

In the era before universal floating currencies severe economic times would drive countries to raise tariffs on imported goods. This would make the domestic goods more attractive to the domestic market. It would also reduce the income of the nations exporting goods.

Now the battle is not over tariffs (yet) but currencies. With currencies the same effect can be had by lowering the value of the domestic currency on the international market. The exporting country makes its' goods lower in relative price to the currency of the importing nation. This increases the volume of goods sold to the importer and increases the income of the exporting nation.

Tariffs still have a bad name in history from the Great Depression. Using currencies instead avoids all the criticism developed over several decades of economic research after WWII.

"A rose would be a rose by any other name" as the saying goes and a trade war is such whether called by currency or tariff. It is a big shell game. Instead of the escalating tariffs of the 1930s we have escalating devaluations in the 2010s. Each exporting nation racing to the lowest international valuation of its' currency.

It should be clear that we can't all be net exporting nations. There must be some nations or nation that imports more than it exports. For a long time this system worked. Now that net importing nation is unable to fulfill its' role and there is no one large enough to take its' place.

This sets the stage for decreasing world trade and the statistics for the last year have supported this effect. It is a dynamic process with a mind of its' own but we have seen it before.

The instabilities are first felt in the exporting nations. There is a good reason for this. In the world today the primary export is labor. Not the direct exporting of people though there is some of that. Rather it is the exporting of inexpensive goods which are produced by very inexpensive labor.

Inexpensive labor is the primary reason manufacturing is done in one nation and not another. The second and third reasons are taxes and environmental regulations. Still cheap labor is by far the most significant. Cheap labor lives with few amenities. It lives close to the earth, it has few if any reserves. A lost job does not put one on unemployment compensation but rather in the street with no food.

So exporting nations large and small with significant populations of cheap employed labor have a rather short fuse on the unemplolyment time bomb. Their leaders know this. First the leadership stimulates domestic demand. Then it adjusts and negotiates new trade advantages with decreasing effectivness. Then it controls or eliminates the information flow on economic data, nascent demonstrations and strikes. Then it cracks down on the riots and free movement of the people. Then it seizes, rations and distributes the necessities of life. Then it looks for foreign distractions and adventures.

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JohnnyCash

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Reply with quote  #1962 
True Inflationary Injection

Economist John Mauldin passes along this status report on the extension of unemployment benefits. This is a direct injection of cash into the pockets of individuals. This is equivalent to the payment of the Bonus Army checks mentioned in Ben Roths' diary. It can have temporary inflationary effects of the same kind described by Roth and of equally short duration.

..........

Not Finer for the "99er"

I had dinner last Sunday night with David Rosenberg. He is beginning to look at the possible effects from what he calls the "99ers" going off extended unemployment benefits. I knew this was coming but had not really looked into the fine print. He wrote me later:

"The looming expiry of the emergency unemployment benefits in the U.S. poses a very large risk to aggregate personal income over the next few quarters. Currently, combined with state programs, someone who loses their job is entitled to 99 weeks of unemployment benefits (a "99er"). However, the extended benefits are set to expire on November 30th, and our back-of-the-envelope calculations shows nearly a million 99ers will be cut off in December alone, with the remainder (about 3 to 4 million) falling off the rolls by April.

"Given that the average weekly unemployment cheque is about $300/week, this amounts to nearly $80 billion (annualized) loss of aggregate income over the next few quarters. This means that personal income could fall by 1.0% QoQ annualized for each of the next three quarters, starting in Q4. The 2% QoQ real GDP estimates pencilled in for Q4 2010 to Q2 2011, will look far too optimistic if such a loss of income does occur. Given that material downside risk to growth going forward, we intend to do more detective work on this file."

Government checks of one form or another are about 20% of total personal income in the US. Will the lame-duck Congress extend those benefits? Will they extend the Bush tax cuts? I just (literally) got off the phone with Suze Orman. She said she thinks they should raise the limit to $500,000 or $1 million. That higher number would be a reasonable compromise, in my humble opinion. Will the Republican Congress and Senate agree when they come back?

I don't want to get into the small-business person making $300,000 and living in a very volatile business climate where they feel the need to save rather than invest and create new jobs. These guys need all the working capital they can get. And let's be clear, this year's "profits" becomes next year's working capital when you are a small business owner. Your credit line at the bank just isn't cutting it anymore.


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Reply with quote  #1963 

Asian Stocks Decline for Second Week on Earnings, Fed Concern

October 29, 2010, 9:55 PM EDT

By Hanny Wan

Oct. 30 (Bloomberg) -- Asian stocks fell for a second week, paring the benchmark index’s second consecutive monthly gain, on concern earnings growth will slow and possible asset purchases by the Federal Reserve may disappoint investors.

BYD Co. tumbled 17 percent in Hong Kong after the Chinese carmaker backed by Warren Buffett said quarterly profit was almost wiped out. Singapore Exchange Ltd. lost 7.8 percent after offering to buy Australia’s ASX Ltd. NGK Insulators Ltd., a maker of insulators and industrial ceramic products, plunged 21 percent in Tokyo after cutting its profit forecast.

“I’m a bit cautious at the moment,” said Chris Leung, a Hong Kong-based portfolio manager at Taifook Asset Management Ltd. “Ahead of the Federal Reserve meeting next week, I’d look to take some profit. As economic data turns stronger, I doubt whether the Fed is going to push the size of quantitative easing. There might be a chance that it won’t meet market expectation.”

The MSCI Asia Pacific Index fell 0.4 percent this week to 129.36, extending last week’s 0.9 percent drop. The gauge rose 2.4 percent in October, its second consecutive gain since Federal Reserve Chairman Ben S. Bernanke on Aug. 27 said more securities purchases may be warranted if U.S. growth slows.

The U.S. central bank is expected to announce a decision on its quantitative-easing strategy at the conclusion of the Federal Open Market Committee’s Nov. 2-3 meeting.

Japan’s Nikkei 225 Stock Average dropped 2.4 percent this week. Hong Kong’s Hang Seng Index declined 1.8 percent, South Korea’s Kospi Index slipped 0.8 percent. China’s Shanghai Composite Index rose 0.1 percent. Australia’s S&P/ASX 200 Index increased 0.3 percent.

NGK Insulators Plunges

BYD tumbled 17 percent to HK$47.25 after reporting third- quarter profit dropped 99 percent to 11.34 million yuan ($1.7 million) amid faltering sales.

NGK Insulators plunged 21 percent to 1,219 yen in Tokyo, the biggest decline on the MSCI index this week. The maker of equipment for electricity networks lowered its full-year profit and sales forecasts, citing delays in orders from China.

Sharp Corp., Japan’s largest maker of liquid-crystal displays, Samsung Electronics Co., the world’s biggest maker of televisions, memory chips and flat screens, Japan Tobacco Inc., the No. 3 publicly traded cigarette maker worldwide, and Esprit Holdings Ltd., a Hong Kong-based clothing retailer, all fell at least 4 percent this week after reporting or forecasting weaker financial results.

This was the peak week for earnings reports, with more than 375 of the almost 1,000 companies in the MSCI Asia Pacific Index releasing results, according to data compiled by Bloomberg. About four companies have exceeded profit estimates for every three that have fallen short, based on Bloomberg data compiled since Oct. 7.

Yen, Takeover

The yen appreciated to a 15-year high against the dollar this week, threatening to cut the value of overseas income at Japanese companies when converted into their home currency and further weighing on their shares. The yen is on course for its strongest annual average level since currencies began trading freely in 1971, according to Bloomberg data and based on each day’s closing price.

Singapore Exchange, which oversees the largest stock market in Southeast Asia, lost 7.8 percent to S$8.80 this week after bidding about $8 billion to buy ASX, the operator of Australia’s main stock exchange. Three Australian lawmakers said Oct. 28 they opposed the transaction. ASX gained 6.4 percent to A$37.18.

The rationale for Singapore Exchange’s bid for ASX is “unconvincing,” Anand Swaminathan and Sanjay Jain, analysts at Credit Suisse Group AG, said in a note to clients. “ASX is not attractive in terms of profitability and growth profile. It is also set to face stiff margin pressure due to competition.”

AIA, KDDI Rise

Among stocks that rose, AIA Group Ltd., the insurer sold by American International Group Inc., soared 17 percent to HK$23.05 on its debut yesterday in Hong Kong, raising $17.8 billion in the city’s biggest initial public offering in history.

KDDI Corp., Japan’s second-largest mobile-phone-network operator, jumped 6.6 percent to 433,500 yen in Tokyo after saying it will spend as much as 100 billion yen ($1.2 billion) to buy back shares.

The MSCI Asia Pacific Index has risen about 7 percent this year on speculation profit growth will weather Europe’s debt crisis, China’s steps to curb property-price gains and concern about the pace of the U.S. economic recovery. Shares in the gauge are valued at an average of about 14 times estimated earnings, their highest level since mid-September.


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Reply with quote  #1964 
Ambac insures municipal bonds and mortgages. It is a primary insurer in the municipal bond market. This is a warning of things to come in the muni-bond market.

November 2010 Last updated at 17:21 ET  BBC World News America

Ambac poised for bankruptcy protection

US house under foreclosure Ambac was hit by the collapse of the housing market during the downturn

US bond insurer Ambac has said it may be forced to file for bankruptcy protection before the end of the year after failing to make an interest payment due on Monday.

The company said it had been unable to raise the capital needed to avoid bankruptcy protection.

Ambac shares in New York closed down 50% as a result of the announcement.

The company has struggled for the past two years as a result of the collapse of the US housing market.

It was forced to pay out huge sums on bonds linked to mortgages that defaulted during the downturn.

'Credit crisis'

The company's debts currently total $1.6bn (£1bn).

It said discussions with "senior debt holders" to restructure its debt through a pre-packaged bankruptcy were ongoing, but there was no guarantee that an agreement would be reached.

If the discussions do prove unsuccessful, then the company would file for Chapter 11 bankruptcy protection "prior to the end of the year", it said.

Analysts said they were not surprised that Ambac was heading for bankruptcy.

"Ambac has been a corpse for some time," said Matt Fabian at research firm Municipal Market Advisors.

"With the credit crisis ongoing and getting worse, it will make any kind of bankruptcy restructuring more difficult and painful for creditors."


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Reply with quote  #1965 
Interesting confirmation of the previous post above on Currency Wars = Trade War

QE2 risks currency wars and the end of dollar hegemony

As the US Federal Reserve meets today to decide whether its next blast of quantitative easing should be $1 trillion or a more cautious $500bn, it does so knowing that China and the emerging world view the policy as an attempt to drive down the dollar.

 
QE2 risks currency wars and the end of dollar hegemony
QE2 risks currency wars and the end of dollar hegemony Photo: AFP

The Fed's "QE2" risks accelerating the demise of the dollar-based currency system, perhaps leading to an unstable tripod with the euro and yuan, or a hybrid gold standard, or a multi-metal "bancor" along lines proposed by John Maynard Keynes in the 1940s.

China's commerce ministry fired an irate broadside against Washington on Monday. "The continued and drastic US dollar depreciation recently has led countries including Japan, South Korea, and Thailand to intervene in the currency market, intensifying a 'currency war'. In the mid-term, the US dollar will continue to weaken and gaming between major currencies will escalate," it said.

David Bloom, currency chief at HSBC, said the root problem is lack of underlying demand in the global economy, leaving Western economies trapped near stalling speed. "There are no policy levers left. Countries are having to tighten fiscal policy, and interest rates are already near zero. The last resort is a weaker currency, so everybody is trying to do it," he said.

Pious words from G20 summit of finance ministers last month calling for the world to "refrain" from pursuing trade advantage through devaluation seem most honoured in the breach.

Taiwan intervened on Monday to cap the rise of its currency, while Korea's central bank chief said his country is eyeing capital controls as part of its "toolkit" to stem the flood of Fed-created money leaking out of the US and sloshing into Asia. Brazil has just imposed a 2pc tax on inflows into both bonds and equities – understandably, since the real has risen by 35pc against the dollar this year and the country has a current account deficit.

"It is becoming harder to mop up the liquidity flowing into these countries," said Neil Mellor, of the Bank of New York Mellon. "We fully expect more central banks to impose capital controls over the next couple of months. That is the world we live in," he said. Globalisation is unravelling before our eyes.

Each case is different. For the 40-odd countries pegged to the dollar or closely linked by a "dirty float", the Fed's lax policy is causing havoc. They are importing a monetary policy that is far too loose for the needs of fast-growing economies. What was intended to be an anchor of stability has become a danger.

Hong Kong's dollar peg, dating back to the 1960s, makes it almost impossible to check a wild credit boom. House prices have risen 50pc since January 2009, despite draconian curbs on mortgages. Barclays Capital said Hong Kong may switch to a yuan peg within two years.

Mr Bloom said these countries are under mounting pressure to break free from the dollar. "They are all asking themselves whether these pegs are a relic of the past," he said.

China faces a variant of the problem with its mixed currency basket, a sort of "crawling peg". Commerce minister Chen Deming said last week that US dollar issuance is "out of control". It is causing a surge of imported inflation in China.

Critics in the US Congress say China could solve that particular problem very quickly by letting the yuan rise enough to bring the country's $180bn trade surplus into balance.

They say the strategy of holding down the yuan to underpin China's export-led model is the real source of galloping wage and price inflation on China's eastern seaboard. The central bank has accumulated $2.5 trillion of foreign bonds but lacks the sophisticated instruments to "sterilise" these purchases and stem inflationary "blow-back".

But whatever the rights and wrongs of the argument, the reality is that a chorus of Chinese officials and advisers is demanding that China switch reserves into gold or forms of oil. As this anti-dollar revolt gathers momentum worldwide, the US risks losing its "exorbitant privilege" of currency hegemony – to use the term of Charles de Gaulle.

The innocent bystanders caught in the crossfire of Fed policy are poor countries such as India, where primary goods make up 60pc of the price index and food inflation is now running at 14pc. It is hard to gauge the impact of a falling dollar on commodities, but the pattern in mid-2008 was that it led to oil, metal, and grain price rises with multiple leverage. The core victims were the poorest food-importing countries in Africa and South Asia. Tell them that QE2 brings good news.

So the question that Ben Bernanke and his colleagues should ask themselves is whether they have thought through the global ramifications of their actions, and how the strategic consequences might rebound against America itself.


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Reply with quote  #1966 

And now a word from the electorate:

No We Can''t!

We aren't the change we’ve been looking for. Change happens without you, regardless.

A leader who can't deliver change (or pizza)
No Time for Change
Dis-organize for Change
Two years is Enough!
No Hopey, No Changey

A Not Beginning
Change We Can't Believe In

Got Any Spare Change?  I'm Hungry!


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Reply with quote  #1967 
JC,
Those links only produce a "404" error for me. 

BTW, as previously discussed, the destruction of money is far greater than what The Fed can create thru Q.E. However, it is the belief that all this Q.E. will cause inflation that matters.  This is what is causing gold and stocks to rise. 
Maybe the believing in inflation is more powerful than all the deflationary pressures - for now.  In time, when nothing seems improve, then reality will rule over perception.  Just my $0.02





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As soon as A observes something which seems to him to be wrong, from which X is suffering, A talks it over with B, and A and B then propose to get a law passed to remedy the evil and help X. Their law always proposes to determine what C shall do for X, or in the better case, what A, B, and C shall do for X.... What I want to do is to look up C. I want to show you what manner of man he is. I call him THE FORGOTTEN MAN. Perhaps the appellation is not strictly correct. He is the man who never is thought of....
He works, he votes, generally he prays - but he always pays....
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Yale University, 1883
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As the Markets Soar, 'They're Already Talking About QE 3'

"It is easy to envisage QE2 giving way to QE3, QE4 and beyond because now that the Fed has started down this road again, it will be very hard to stop," says one economist.

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Reply with quote  #1969 
Cartoon from 1934..Chicago Tribune

http://twitpic.com/12vvmt/full


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Reply with quote  #1970 

Quote:
Originally Posted by James_Harding
Cartoon from 1934..Chicago Tribune

http://twitpic.com/12vvmt/full


That is a great cartoon ---- things haven't changed much, ---well Stalin is dead now. The solution is the same one from the Depression --- it didn't work then, it didn't work in QEI and it won't for QEII.


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JohnnyCash

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Reply with quote  #1971 
Quote:
Originally Posted by henrywalker
JC,
Those links only produce a "404" error for me. 

Henry -- thanks for letting me know. I checked them at post time but now they don't work for me either. Part of the functionality of this Thread Software has been change recently to disable outside links which are included in copied text such as I posted.

BTW, as previously discussed, the destruction of money is far greater than what The Fed can create thru Q.E. However, it is the belief that all this Q.E. will cause inflation that matters. 

Yes at this point it is the expectation that rules. However there have been price increases such as commodities but this is in reaction to the falling INternational value of the Dollar and an International demand increase for commodities. Domestically credit creation continues its' steep decline as shown on the previous page using the St. Louis Fed graphs.

 This is what is causing gold and stocks to rise. 

Gold is rising because of fear of an immediately inflating dollar. Stocks are rising from High Frequency Traders (see article on previous page) and intervention of the PPT (Plunge Protection Team). Some retail investors are returning to stocks. Stocks themselves are still relying on cost cutting for revenue even though revenues in some cases have risen in comparison to 2009 which was a very bad year.
 
The sentiment against the dollar is strong, about 94%. Similar to the situation in November of 2009 before the 6 month rise in the dollar as shown on the DXY charts.
 
Maybe the believing in inflation is more powerful than all the deflationary pressures - for now.  In time, when nothing seems improve, then reality will rule over perception.  Just my $0.02

The destruction of credit and debts is going to produce the domestic decline in prices, even if people expect inflation.





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JohnnyCash

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Reply with quote  #1972 
Henry --- the post below on the previous page still has active links -- I just checked. I don't know why some posts keep the links enabled but it is definitely at the discretion of our Thread Software. I'm not complaining, the Sysadmin may have a good reason for disabling some links.

Asian Stocks Decline for Second Week on Earnings, Fed Concern


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Reply with quote  #1973 

International Criticism of Chairman Bernanke grows. His strategy leans heavily towards the benefit of big American banks. Long term Treasury rates rise in reaction. Short term treasuries are safest, maturities under 2 to 5 years.

We are heading straight into a trade war with China. The links are disabled but the headers say enough by themselves.

The Chinese have resisted floating their currency against the US Dollar, instead it is pegged to vary at a value determined by the Chinese Central Bank. This keeps Chinese goods attractively priced in the US and other foreign markets.

If the Chinese Renminbi were allowed to float to its' much higher market determined price against the Dollar then US goods would become more affordably priced in Chinese markets but Chinese goods would become expensive to Americans.

So, in fairness Chairman Ben has been disappointed in the Chinese year long resistance to floating their currency even after Sec. Geithner made a special trip all the way to Beijing. In an ideal world floating currencies adjust the value of one currency for another to automatically adjust for trade imbalances between nations. This is what Mr. B wants the Chinese (and other nations) to do. This is the way "free trade" should work among reasonable economic participants.

The Chinese  don't see it this way. They want to continue to be the low cost producer even after achieving much wealth and significant increases in living standards for the average Chinese citizen. The Bernanke approach threatens Chinese jobs and as I wrote on the previous page the Chinese laborer is much more emotional (and violent) about this than the average American worker. For Mr. B. this is a reasonable business decision. For the Chinese this is the seed of domestic rebellion.

Then there is the deflation fear that haunts Mr. B. He was chosen as Chairman because of his graduate studies in the Depression and is convinced that dumping liquidity into the already overstuffed vaults of the big NY banks will create inflation. Much like the cartoon Henry posted above from 1936. Unfortunately the liquidity solution didn't work in 1936 --- or 2010.

So, there you have it, all the elements for a "Perfect Storm". Mr. B. must walk the tightrope between Deflation on one side and militant Chinese on the other. He will take each step slowly, cautiously and small. In the mean time US domestic credit is taking great swaths of money out of existence. It is hard not to have some sympathy for the man.

Doubts grow over wisdom of Ben Bernanke 'super-put'

The early verdict is in on the US Federal Reserve's $600bn of fresh money through quantitative easing. Yields on 30-year Treasury bonds jumped 20 basis points to 4.07pc.

 
The early verdict is in on the Fed's $600bn blitz of fresh money, the clearest warning to date that global investors will not tolerate Ben Bernanke's policy of generating inflation for much longer.
Mr Bernanke is targeting maturities of 5 to 10 years with purchases of Treasuries. Photo: GETTY

It is the clearest warning shot to date that global investors will not tolerate Ben Bernanke's openly-declared policy of generating inflation for much longer.

Soaring bourses may have stolen the headlines, but equities are rising for an unhealthy reason: because they are a safer asset class than bonds at the start of an inflationary credit cycle.

Meanwhile, the price of US crude oil jumped $2.5 a barrel to $87. It is up 20pc since markets first concluded in early September that 'QE2' was a done deal.

This amounts to a tax on US consumers, transferring US income to Mid-East petro-powers. Copper has behaved in much the same way. So have sugar, soya, and cotton.

The dollar plunged yet again. That may have been the Fed's unstated purpose. If so, Washington has angered the world's rising powers and prompted a reaction with far-reaching strategic consequences.

Li Deshui from Beijing's Economic Commission said a string of Asian states share China's "deep bitterness" over dollar debasement, and are examining ways of teaming up to insulate themselves from the tsunami of US liquidity. Thailand said its central bank is already in talks with neighbours to devise a joint protection policy.

Brazil's central bank chief Henrique Mereilles said the US move had created "excessive dollar liquidity which we are absorbing," forcing his country to restrict inflows. Mexico's finance minister warned of "more bubbles."

These countries cannot easily shield themselves from the inflationary effect of QE2 by raising interest rates since this leads to further "carry trade" inflows in search of yield. They are being forced to eye capital controls, with ominous implications for the interwoven global system.

In London and Frankfurt the verdict was just as harsh. "In our view, this is one of the greatest policy mistakes in the Fed's history," said Toby Nangle from Baring Asset Management.

"The Fed is gambling that the so-called 'portfolio balance channel effect' – pushing money out of government bonds and into other assets – will lift risk asset prices. The gamble is that this boosts profits and wages, rather than simply prices. We remain unconvinced. How will a liquidity solution correct a solvency problem?" he said.

"A policy error," said Ulrich Leuchtmann from Commerzbank. The wording of the Fed statement is "potentially dangerous" because it leaves the door open to a further flood of Treasury purchases if unemployment stays high. "It is a bottomless pit," he said.

Of course, it is precisely this open door that has so juiced risk trades, from Australian dollar futures, to silver contracts, and junk bonds. Goldman Sachs thinks QE2 will ultimately reach $2 trillion, with no exit until 2015. Such moral hazard is irresistible. It is the Bernanke 'super-put'.

Yet the reluctance of investors to leap back into the US Treasury market as they did after QE1 is revealing. The 30-year segment of the Treasury market is too small to matter, but symbolism does matter. Vigilantes sniff stealth default. "If long bond investors continue to throw their collective toys out of the cot, it risks upending the Fed's policy," said Michael Derk from FXPro.

Mr Bernanke is targeting maturities of 5 to 10 years with purchases of Treasuries. These bonds have behaved better: 10-year yields fell 14 points on Thursday to 2.48pc. However, Mark Ostwald from Monument Securities said foreign funds may take advantage of QE2 to dump their holdings on the Fed, rotating the money emerging markets rather than US assets.

Bond funds are already restive. Pimco's Bill Gross says the great bull market in bonds is over, denigrating Fed policy as the greatest "ponzi scheme" in history. Warren Buffett has chimed in too, warning that anybody buying bonds at this stage is "making a big mistake",

Fed chair Ben Bernanke uses the term 'credit easing' to describe his strategy because the goal is to lower borrowing costs. If he fails to achieve this over coming months - because investors balk - the policy will backfire.

No clear rationale for fresh QE can be found in orthodox monetarism. Data from the St Louis Federal Reserve show that M2 money supply stopped contracting in the early summer and has since been expanding at an accelerating rate, topping 9pc over the last four-week bloc.

(I'll have to take a look --- I just posted the most recent M2 data 2 weeks ago)

The Fed has used the 'Taylor Rule' on output gaps as a theoretical justification for QE, but Stanford Professor John Taylor has more or less said his theories have been hijacked. "I don't think (QE) will do much good, and I also worry about the harm down the road," he said.

It has not been lost on markets that the Fed's purchases of $900bn of Treasuries by June (with reinvested funds from mortgage debt) covers the Treasury's deficit over the same period. The slipperly slope towards 'monetization' of public debt beckons.

Global investors mostly accepted that the motive for QE1 was emergency liquidity, and that stimulus would later be withdrawn. But there are growing suspicions that QE2 is Treasury funding in disguise.

If they start to act on this suspicion, they could push rates higher instead of lower, and overwhelm the Bernanke stimulus. That would precipitate an ugly chain of events for the US.


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Reply with quote  #1974 
Startling forgotten history with several uncomfortable similarities to today.
 
In 1930s German Press, Hitler and Mussolini Praised FDR
 

FDR — The Man, the Leader, the Legacy, Part 12
by Ralph Raico, April 2001

Mussolini, in turn, was flattered by what he saw as the New Deal’s aping of his own corporate state, in the NRA and other early measures. When Roosevelt “torpedoed” the London Economic Conference of June 1933, Reichsbank President Hjalmar Schacht smugly told the official Nazi newspaper Völkischer Beobachter that the American leader had adopted the economic philosophy of Hitler and Mussolini. Even Hitler had kind words at first for Roosevelt’s “dynamic” leadership, stating that “I have sympathy with President Roosevelt because he marches straight to his objective over Congress, over lobbies, over stubborn bureaucracies.”

What linked the New Deal to the regimes in Italy and Germany, as well as in Soviet Russia, was their fellowship in the wave of collectivism that was sweeping the world. In an essay published in 1933, John Maynard Keynes observed this trend, and expressed his sympathy with the “variety of politico — economic experiments” under way in the continental dictatorships as well as in the United States. All of them, he gloated, were turning their backs on the old, discredited laissez faire and embracing national planning in one form or another.

…….

 

In 1973, John A. Garraty published an important article on the CCC in the American Historical Review. Garraty was Gouverneur Morris Professor of American history at Columbia and later general editor of the American National Biography, a distinguished historian, and a pillar of the historical establishment. By no stretch of the imagination could he be considered one of the wretched band of Roosevelt haters.

 

Yet, while a warm admirer of FDR, Garraty was compelled to note the striking similarities between the CCC and parallel programs set up by the Nazis for German youth. Both

 

were essentially designed to keep young men out of the labor market. Roosevelt described work camps as a means for getting youth ‘off the city street corners,’ Hitler as a way of keeping them from ‘rotting helplessly in the streets.’ In both countries much was made of the beneficial social results of mixing thousands of young people from different walks of life in the camps.... Furthermore, both were organized on semimilitary lines with the subsidiary purposes of improving the physical fitness of potential soldiers and stimulating public commitment to national service in an emergency.

 

Garraty listed many other similarities between the New Deal and National Socialism. Like Roosevelt, Hitler prided himself on being a “pragmatist” in economic affairs, trying out one panacea after another. Through a multitude of new agencies and mountains of new regulations, both in Germany and America, owners and managers of enterprises found their freedom to make decisions sharply curtailed.

 

The Nazis encouraged working — class mobility, through vocational training, the democratizing youth camps, and a myriad of youth organizations. They usually favored workers as against employers in industrial disputes and, in another parallel to the New Deal, supported higher agricultural prices.

 

Both FDR and Hitler “tended to romanticize rural life and the virtues of an agricultural existence” and harbored dreams of the rural resettlement of urban populations, which proved disappointing. Characteristically for the collectivist movements of the time, “enormous propaganda campaigns” were mounted in the United States, Germany, and Italy (as well, of course, as in Russia) to fire up enthusiasm for the government’s programs.

 

It is no wonder, then, as Professor Garraty writes, that “during the first years of the New Deal the German press praised him [Roosevelt] and the New Deal to the skies.... Early New Deal policies seemed to the Nazis essentially like their own and the role of Roosevelt not very different from the Führer’s.”

 

America under FDR did not, of course, follow Germany and Russia on that fateful road to the bitter end. The main reason for this lies, as scholars such as Seymour Martin Lipset and Aaron L. Friedberg have recently written, in our deeply rooted individualist and anti — statist tradition, dating back to colonial and Revolutionary times and never extinguished. Try as he might, Franklin Roosevelt could bend the American system only so far.

………

FDR — The Man, the Leader, the Legacy, Part 11
by Ralph Raico, April 2001

……………………….

But the changes under FDR that started with his first Hundred Days were on such a scale and left such an enduring ideological residue that they represent a quantum leap of statism in American history.

 

The cutting edge of the revolution was the hordes of New Dealers who manned the old and newly minted bureaucracies. As the archestablishment historian Arthur Schlesinger Jr. wrote:

 

They brought with them an alertness, an excitement, an appetite for power, an instinct for crisis and a dedication to public service which became during the thirties the essence of Washington.

 

No group was filled with more excitement or had a greater appetite for power than those quintessential New Dealers, the Brain Trust. The impact of those erstwhile professors, first assembled by Raymond Moley for the 1932 campaign, could be discerned in most of the new legislation and in its overall collectivist thrust.
  

Rexford Tugwell and making America over

The most prominent of the Brain Trusters and the man often considered the chief ideologist of the “first New Deal” (roughly, 1933–34), was Rexford Guy Tugwell. Tugwell was a follower of the school of thought known as Institutional Economics, founded by the eccentric writer on economics, Thorstein Veblen. His official position was assistant secretary of agriculture, that is, second in command to Henry A. Wallace, but his influence and empire-building extended far beyond that. In more ways than one, Tugwell is reminiscent of Ellsworth Toohey, in Ayn Rand’s great novel, The Fountainhead.

 

Tugwell was another of the progressive thinkers enamored of the experiment in war-socialism under Wilson, especially of Bernard Baruch’s War Industries Board (WIB). The First World War, Tugwell gushed, was “an industrial engineer’s Utopia.” He lamented the Armistice, which prevented the WIB from expanding into “a great experiment” in control of production and consumption.

 

While still in academe, Tugwell was eager to observe a land where such a “great experiment” was well under way. In 1927, he traveled to the Soviet Union. Certain aspects of the dictatorial political system he found offensive, of course, but the mighty changes in society and the economy dazzled him.

 

Through scientific economic planning the Soviets were able to “carry out their industrial operations with a completely thought-out program.” “The future,” he announced, “is becoming visible in Russia.”

 

As the Depression set in, terms like “planned economy” and “national planning” became the watchwords of the day. They had been bruited about by advanced thinkers for years and popularized by best-selling writers like George Soule and Stuart Chase, who lauded the Soviet Gosplan (central planning), asking plaintively, “Why should the Russians have all the fun of remaking a world?” The flagship of progressivism, The New Republic, made the cant phrases its constant refrain. (Just as a matter of curiosity: when was The New Republic ever right about anything?) Now, with FDR in charge, fervent apostles of the nebulous creed wielded real power in Washington



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kaihacker

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Reply with quote  #1975 

Fed chairman: Increasing inflation not a goal

“We are not in the business of trying to create inflation,” Bernanke said at a forum in Georgia to discuss the role of the central bank in the U.S. economy.

....He's been nothing but truthful in the past

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Reply with quote  #1976 

That's a confusing quote --- I thought the Fed had admitted to just such a goal. I know Mr. B. is under a lot of pressure but now I'm worried about his grip on reality.


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Reply with quote  #1977 
#


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Reply with quote  #1978 
Fmr. Minnesota Governor Jesse Ventura Investigates the NY Bank Bailout Conspiracy

Jesse gives a dramatic, sometimes funny but always deadly serious report.







If you haven't seen "Inside Job" you should.

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Reply with quote  #1979 




andrew maguire interview
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/3/30_Andrew_Maguire_%26_Adrian_Douglass.html

 

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Reply with quote  #1980 

I agree with Bernanke when he says the Fed's QE actions are not inflationary. 

No new money is added to the private sector.  Nor does it boost lending. 




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